NTIA: new Gov must stop rise in administrations
The trade body said the UK’s night-time economy (NTE) faces a critical juncture as data from law firm Shakespeare Martineau showed the fragility of the sector has intensified with 879 UK businesses filing for administration in the first six months of 2024. This is a 42% increase from the same period in 2022 and a 16% uplift from 2023.
The hardest-hit sectors include retail, manufacturing, construction, real estate and hospitality, which together account for 57% of all business administrations.
Greater London has emerged as the epicentre of this crisis, with 22% of the filings, followed by the north-west at 17% and Yorkshire and the Humber at 11%.
Impending wave
Although current administration numbers have not yet reached pre-Covid levels (940 in the first half of 2019), insolvency experts warn of an impending wave of business failures unless the new Government swiftly addresses inflation and rising interest rates.
The NTIA said the hospitality sector, a cornerstone of the NTE, which has seen 78 businesses enter administration in the first half of 2024. This figure represents 9% of all administrations, with year-to-date figures for the sector standing at 189 – a huge 75% increase from the previous year. Hospitality now ranks as the fifth most affected sector, following retail, manufacturing, construction and real estate.
NTIA CEO Michael Kill said: “The anticipated governmental shift following the general election offers a pivotal opportunity for ministers and MPs to support and rejuvenate the night-time economy.”
Infrastructure and regulatory challenges
He continued: “We urge all incoming MPs across the UK to engage in meaningful dialogue with the nightlife community. Effective communication is crucial to understanding our challenges and developing practical solutions.
“Policies should aim to alleviate the inflationary pressures on businesses, stabilise the current trading environment and protect our cultural landscape.
“The sector is currently beset by infrastructure and regulatory challenges that hinder recovery and leave small and medium enterprises, as well as our cultural heritage, extremely vulnerable.
“We are prepared to work collaboratively with our elected representatives to ensure a prosperous future for the night-time economy and the communities it serves. The time for action is now; the survival of our sector depends on it.”
